X Factor: 5 Stocks Reaching Their Ex-Dividend Date on September 25

Philip Morris International, Cypress Semiconductor, and ProAssurance are on the list.

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MINYANVILLE ORIGINAL Seven stocks will reach their ex-dividend date tomorrow, which is significant for investors as the seller of the stock on that date, not the buyer, receives the most recent dividend.

A stock must be bought one day before the ex-dividend date to claim any dividends that have been announced but not yet paid. Dividends are paid on the dividend record date, usually two business days after the ex-dividend date.

Purchasers must own a stock several days prior to the dividend record date to get the dividend. Those purchasing right before the date forfeit the dividend and normally get the stock for a reduced amount.

It may seem an anachronism in this era of high frequency trading, but the dividend rate rules are in effect since it can still take up to three business days for transactions to be credited to and settled in an investor's account.

Below are five stocks that schedule September 25 as their ex-dividend date. All annual yields are estimated.

Philip Morris International (NYSE:PM) yields 3.69% annually. The producer and seller of cigarettes and tobacco products has a market cap of $155.32 billion and will pay a quarterly dividend of $0.85 on October 11. Its quarterly yield will be 0.92% based on Friday's closing price of $92.14. The company has paid a quarterly dividend since 2008, and the dividend has increased every year.

Cypress Semiconductor (NASDAQ:CY) yields 3.66% annually and has a market cap of $1.78 billion. The producer of mixed-signal and programmable solutions will pay a quarterly dividend of $0.11 on October 18. This dividend results in a quarterly yield of 0.92% based on Friday's closing price of $12.01. The company paid a one-time dividend in 2008 and then began paying a quarterly dividend in the middle of 2011.